Economic Edge

World View & Market Commentary. Forest first; Trees second. Focused on Real & Knowable facts that filter through the "experts" fluff and media hyperbole. Where we've been, what the future may hold and developing a better way forward.

Monday, July 3, 2017

As predicted in my article “Bitcoin Breakout Coming”, published last Thursday, June 29th, I stated, “This pennant WILL resolve not later than about July the 5th…”

LIGHTCOIN

Overnight Lightcoin led the way with a definitive breakout, and is now approximately 20% higher than it was yesterday!

Note, too, that on June 29th I stated, “I expect that mathematically this ratio will close over the coming years to get closer still to that 4 to 1 ratio. That means that I expect Litecoin to outperform Bitcoin in percentage gains from this point forward in the long run.”

Back on June 8th I also stated about Litecoin, “Litecoin is another cryptocurrency designed to be “silver” compared to Bitcoin’s “gold.” There will only be 84 million Litecoins ever mined, exactly 4 times the amount of Bitcoins. However, Litecoins are currently trading for roughly 1/100th the price of Bitcoin, I would expect the math to eventually catch up as more people become aware of Litecoin’s also limited supply.”

Today that ratio has already closed to 54.7. I will be watching this ratio to make sure that it doesn’t get ahead of itself. This is a great example where paying attention to simple math pays off, and actually reveals insight into the future.

On Litecoin’s breakout at $39, I am now targeting this leg up to reach $67 before the next major round of consolidation, this is IF the length of the mast is equal. Also beware that retests of the breakout are possible.

BITCOIN

Bitcoin has also broken out of its pennant formation, although not as definitively:

I expect that if this breakout holds from here, the target should be in the $4,300 range over the next couple of months.

ETHEREUM

Ethereum, however, is still within its flag and has not yet broken out in either direction. Although Ethereum has performed well over the past couple months, its quantity is not strictly limited as are Bitcoin and Litecoin. I would still acquire on a break out of this formation higher.

A WORD ABOUT WAVES

In nature, all waves require a DIFFERENTIAL of some sort to exist. That differential can be temperature, pressure. These differentials are the ROOT OF ALL ENERGY.

If the universe was 100% homogeneous, there would be no energy, no matter, no us.

Once a differential exists, then energy potential exists. This potential leads to movement as everything moves from high pressure to low. This is the genesis of motion. Motion is a requirement of matter!

Once you begin to think in terms of differentials, then you will see energy potential, and you will then understand the movement of waves resulting from those differentials. Those waves rule everything, including our man-made constructs that we call “markets.”

The differential most noticeable to me at this moment is the fact that our bond market interest rates are moving strongly higher. This creates an energy differential with nations whose rates have not moved higher in unison. As that occurs, our higher rates attracts money, and that is a wave that can, and has, moved our already overvalued markets higher still.

Math is a descriptor of these differentials – embrace the math, it provides a window to the future!

Thursday, June 29, 2017

Since the FED created their QE game of charades, the “markets” are no longer real – none of them. Unlimited quantities of “money” are thrown at them from all central banks around the globe. Heck they even have Janet Yellen convinced that up is the only direction the markets will ever see again in her lifetime!

This boundless supply of limitless “money” has now hit the mathematical fixed quantity of Bitcoin and Litecoin – my two favorites because of their fixed quantity. I liken the unlimited supply of “dollars,” “yen,” “Euros,” “Yuan,” and all other “currencies” around the world, to an F-4 Phantom Jet Fighter going well over 500 miles per hour. Well, that F-4 Phantom just hit the Rock of Gibraltar – the unmovable limited quantity of Bitcoin.

The Rock of Gibraltar is not in a bubble, it is the F-4 traveling at near the speed of sound that is the bubble! This will become evident as the collision between the two plays out over the coming years.

Keep in mind that we're not just talking dollars, the Yuan is the largest player in this space by far - note that they don't call it the Renminbi for nothing! Literally translated it means “The People’s Money” in Chinese.

BITCOIN TA

The market for Bitcoin was previously so small, but growing so fast, that applying technical analysis (TA) to it was pretty much pointless. But over the past few months I have been noticing that reliable patterns like Head & Shoulders were playing out according to known TA rules.

I keep money in Bitcoin, Litecoin, and Ethereum, not to speculate, but as a store of value. But that doesn’t mean I’m not paying attention to the TA formations.

I see a reliable pattern playing out now – it’s called a pennant. This pennant WILL resolve not later than about July the 5th (remember that Bitcoin trades year round without “after hours markets” or holidays), and it is a big one!

The run into a pennant is called the mast. This formation resembles a flag, which is similar to a pennant, but shaped as a rectangle, not a triangle. Both the flag and the pennant are consolidation sideways moves. The rule for both is that the entry direction, in this case up, will be the same as the exit direction. And that the length of the mast will be equal into and out of the pennant or flag.

I believe this mast began at about the $1,200 level and ended at $3,000, thus this pattern is worth about $1,800 on a break higher. So in this case, IF THIS FORMATION IS VALID AND BREAKS HIGHER, then I will be looking for Bitcoin to proceed to roughly the $4,300 level, and that it will take approximately two months for it to get there (a proportional amount of time).

This is interesting to me because the bond market has just made a significant move higher, while stocks have cast off a six Hindenburg Omen cluster (showing internal weakness), one of the necessary ingredients for a stock market crash, and at minimum higher odds of a significant decline.

Bitcoin did not exist during the last financial crisis, so we do not know how it will behave in the next. My guess is that speculators who hold Bitcoin may need to initially sell them to raise dollars to pay other “investment” losses. But overall I would expect those who hold dollars to want to move those dollars to safe haven. Where is it safe? Bitcoin. Why? Because it’s secure and it’s a store of value because it has a fixed quantity, unlike tulips or dollars.

INTEREST RATES

A word about interest rates. I think most analysts have this wrong… Mathematically our macro economy is saturated with debt. Mathematically adding more debt to a saturated system does not promote real growth, it actually destroys growth because new “money” that is created has to go to service the debt and to pay interest to bankers who made the “money” from thin air.

As we raise rates I expect that the differential in rates between the U.S. and the rest of the world INITIALLY will cause dollars to repatriate thus INITIALLY fueling the “asset” bubbles higher. This will, and may have already, run out of steam. Once dollars stop repatriating, then the expected slowdown will occur again caused by the math associated from higher interest burden on an already saturated environment. Yes, you read that right. Creating more debt OR raising interest rates BOTH will create a negative math situation beyond the short run.

For those new to the diminishing returns of debt phenomena, here is what I call the Chart of the Century up to the phase transition that occurred in 2009 - 2010:

QE toyed with the numbers and produced this more current chart:

Bitcoin is limited in quantity to 21 million – ever. Litecoin is limited to four times that amount, or 84 million. Thus once all coins are in circulation, the ratio should be 4 to 1. In other words, if Bitcoin is $4,000 per coin, then Litecoin theoretically would be worth about $1,000 if that ratio holds.

But only two weeks ago that ratio was close to 100 to 1. Today Bitcoin is at about $2,560, and Litecoin is at $41.13, or a ratio of 62.24 to 1. I expect that mathematically this ratio will close over the coming years to get closer still to that 4 to 1 ratio. That means that I expect Litecoin to outperform Bitcoin in percentage gains from this point forward in the long run. For example, over the past month Bitcoin has risen 16.81%, but Litecoin has risen 68.92%.

Below is a chart showing a correlating Litecoin flag formation to Bitcoin’s pennant:

Litecoin’s mast appears to me to be about $28 long! If it breaks from say $40, then I would expect a target of $68. That would be a 70% rise which is very comparable to Bitcoin’s target – again, IF it breaks and behaves as TA would expect.

ETHEREUM

Ethereum is NOT limited in supply, unlike Bitcoin and Litecoin. For this reason it may or may not be a weaker store of value. But it does have better transactional value, a trait that may carry it very far indeed as several major banks and even countries are looking to incorporate Ethereum onto a transactional basis.

It’s performance over the past two months has been astonishing, but it has stumbled recently. I own Ethereum, but wish it had both transactional athleticism and a fixed maximum quantity.

I see the same flag pattern playing out in Ethereum now:

The mast on Ethereum is proportionally longer than either Bitcoin or Litecoin – I measure it to be $280 long! So if it breaks from $290, then that mast length

would be targeting $570, a 96% rise!

Summary:

I think these three cryptocurrencies will all head higher as the math of unlimited quantity smashes against fixed and truly secure quantity.

We will see if these formations play out. The track record is very short, so I will not be that surprised if they don’t. I would not take action until a clear break is made up and out of those formations. If they break below the formations, I will personally do nothing but add to my positions as they reach key support levels.

Excuse me, but I can’t stop laughing at the latest round of central banker charades!

Central banker charades, of course, were created in the year 1913, but they have been improving, and improving the game ever since. So much so, that today’s central banker charades are the funniest version yet – I don’t see how anyone can stop laughing!

Here are a couple of Janet Yellen quotes from her game of charades:

"I want to be completely clear that I strongly oppose ‘Audit the Fed.’"

And my favorite for a hysterical laugh:

"I Don't Believe We Will See Another Crisis In Our Lifetime."

Pick me up off the floor, my stomach hurts! Of course her puppet masters already have the next crisis in motion. LOL, this is fun!

Stress Test Charades were created circa 2009 following the initial panic stage created by the central banks themselves. People in general were losing confidence in the con, so the charade leaders decided to prove that they were not insolvent, that they had real assets!

Of course they have assets! We all know that they own computers and with only a little bit of electricity combined with only half a wit, they are able to generate assets at will! Just look at their own balance sheet charade! Nearly $5 trillion worth of charades that was used to provide “assets” to the banks at no interest so that they could speculate/derivatize/manipulate every former “free market” on the planet!

Of course this charade was so popular in the United States that central bankers around the globe now love to play Stress Test Charades too!

This came after “Indebt Poor Nations Charades” – a very fun and entertaining game where central bankers power up their computers to create unlimited quantities of “money” from nothing, and “lend” it to poor countries who then tax the productive efforts of the poorest of the poor, convert said taxes into gold, and repay said charade “loans” with the gold as spelled out in the central banker charade rule book! What fun!

Thursday, June 8, 2017

I have read many articles lately claiming that Bitcoin is in
a bubble. Some proclaim it similar to
the famous Great Tulip bubble of 1637… but that comparison is only for those
who do not understand the significance of what is happening currently with
blockchain technology. If you are new to
Bitcoin and blockchain technology, I would suggest that it’s highly important
for you to take the time to research the basics of how it works and why it’s
different – simply Google “how does Bitcoin work.”

The main argument of those who proclaim it to be in a bubble
is that the people buying it at these prices are not buying it for its original
purpose – which they believe to be enabling transactions. Yes, it is being used for transactions, much more than 100,000 businesses now take Bitcoin for transactions. But instead naysayers believe that others are buying it as an
“investment” and thus will surely be burned.

For me, and I believe most who understand what is
happening, we are not buying it for either of those reasons. We own it because we see it acting as a “store
of value,” where nothing else priced in dollars is. With interest rates artificially low
(manipulated by central banks), a normal person cannot earn even near the pace
of actual inflation with any type of traditional savings account. Bonds are artificially in a bubble, stocks
are artificially in a bubble, real estate is in yet another bubble, everywhere one
who understands bubble dynamics looks they see a bubble (but not Bitcoin,
people are trading in their worth less and less dollars for them). The bubble is the dollar – the world’s “reserve”
and “petro” dollar is being drowned by central banks all over the globe, not
just our own “FED.”

And thus there is no store of value to be found. This is a terribly ugly situation for people
who believe in hard work and saving to get ahead; to someday retire
comfortably. Retirees on fixed incomes
simply cannot, and will not be able to keep up as the impossible math of dollar
debt continues on its vertical ascent.

We would love to love gold and silver, but those too, are
manipulated by central banks who own the majority of it. They manipulate and derivative the markets to
artificially keep devaluation of the dollar hidden.

Control of the dollar is centralized with the banks, that’s
why we refer to them as “central” banks.
All the power and control resides with them; as private individuals were wrongly, and illegally, given the power to “coin” money with the Federal Reserve Act of 1913.

What makes Bitcoin a better store of value?

1. It is
decentralized.This is huge!It means that it is not under the control of
central banks, and thus cannot be manipulated directly by them.This is THE MOST IMPORTANT aspect, it is a
game changer as it changes the WHO is behind it – something that gold and
silver do not do because central banks have printed “money” to buy the majority
of it.

Caution – Central banks may be able
to indirectly manipulate blockchain currencies in the future if they create
ETFs and other derivatives based upon them.
This, however, will not change the underlying store of value, and when
it happens I would encourage you not to own the derivative, but to instead buy
Bitcoin directly, again because it’s not in control of the central banks, is
decentralized versus their centralized everything which makes them vulnerable. Yes - Central Banks can print dollars and use them to buy Bitcoin, but that will only drive the price up and cause others to enter as well. In the end they cannot manipulate what they don't control.

Even if central banks were to “ban”
exchanges in one country, all one will have to do is join an exchange
overseas. This has the central banks
trumped, it cannot be stopped.

To better understand the power of
decentralization, please take the time to watch the video at the end of this post, or (click on this link).

2. Unlike tulips, dollars, or even precious metals,
Bitcoin is strictly limited in its supply.This is where the math comes in.Bitcoin
was founded in 2008 and there will ultimately be only 21 million Bitcoin ever
mined.Today we are approaching the 80%
mark, the remaining 20% will take years to mine, and the “mining” gets more
difficult and slow as we go.

This is a hard feature built into
the coding. It’s what makes Bitcoin a store
of value – the more money that comes in, the more each Bitcoin is worth. As I type, that is $2,774.00 per Bitcoin
according to Coinbase where you can go to open an account, much like a
brokerage account (there are currently 7.3 million Coinbase users). Of course you can buy Bitcoin in any increment,
you don’t have to buy them in whole units.

People all over the world can buy,
own, and transact in Bitcoin. There are
now 7.3 billion people on the planet, so if all 21 million Bitcoin were
distributed evenly to every person on the planet, each person would have only
.0028767 of one bitcoin!

Another way of stating that math is
that only 1 person out of every 347.6 people can possibly ever own a whole
Bitcoin.

Today the market cap of Bitcoin is
$45.17 Billion. The more money that
comes in, the higher the market cap, the higher the price of Bitcoin.

Many analysts start to compare
Bitcoin’s market cap with that of large companies like Apple, whose current
market cap is 18 times that of Bitcoin’s at $810 Billion.

But here’s the deal. Bitcoin is not a company, it is a form of
money. Unlike dollars, there will not be
an endless supply. In fact, if you took
the entire M2 money supply of the United States, currently $13.5 trillion, and
put it all into Bitcoin instead, then each Bitcoin would be worth $642,857. But Bitcoin is not just traded in dollars –
it’s traded in every currency in the world.
And right now global M2 money supply is calculated as roughly $72
trillion, or $3.4 million per Bitcoin.

It’s true that other blockchain
currencies are springing up like daisies, or tulips. But their market caps combined are just now
rivaling that of Bitcoin’s. So, yes,
they will be “diluting” bitcoin’s math.
Not all crypto currencies have hard limits to their supply, and that
will mean that they will always be worth less.
Right now Ethereum is in second place with a market cap of about $24
billion compared to Bitcoin’s $45 billion.
Litecoin is another cryptocurrency designed to be “silver” compared to
Bitcoin’s “gold.” There will only be 84
million Litecoins ever mined, exactly 4 times the amount of Bitcoins. However, Litecoins are currently trading for
roughly 1/100th the price of Bitcoin, I would expect the math to
eventually catch up as more people become aware of Litecoin’s also limited
supply.

3. Bitcoin is a better store of value because it is
secure. Decentralization and encryption
make it secure. It can be stored in electronic
cyber “vaults” where you keep a hard copy of the encryption cypher. This means that your exchange can be hacked,
your computer hacked, but your bitcoin don’t actually reside in either! They reside on someone else’s computer
somewhere – and only you have the code to get to it. Thus they cannot be confiscated by a
government, a banker, or a hacker.

I liken this to the pursuit of
freedom versus the pursuit of security.
When you pursue freedom, you get security at very little cost. That’s what decentralization does. Bitcoin is the pursuit of freedom – whereas
centralized systems, such as central banking, or even socialism, are the
pursuit of security and the abandonment of freedom.

Pursue freedom!

4. Bitcoin transactions are stored on a public
ledger, all confirmed transactions are included in the blockchain. Again, decentralized bookkeeping is less
vulnerable and more secure than centralized legers. This is where Ethereum, another blockchain
currency, shines. Ethereum is built upon
an encrypted ledger and can be used for many purposes, not just as a
currency.

One use is that these encrypted ledgers
will enable safe and secure online voting one day soon.

Someday Bitcoin will, in fact, be in a bubble. But that day is not now, not even close. The great thing about all cryptocurrencies is
that they can and do exist alongside of whatever “money” we use for our
transactions. They also exist alongside
of gold/silver, and may in fact be drawing money that otherwise would be
seeking a store of value there.

So I say, let competition reign! I will use dollars for transactions because I
have to (for now), but I will use cryptocurrencies, gold, and silver to park my
dollars so that the central banks cannot destroy their value. And that in a nutshell is why Bitcoin is NOT
in a bubble, and won’t be for quite some time.

That said, do expect many sharp pullbacks along the
way. Remember that NOTHING moves in a
straight line, EVERYTHING moves in waves.
You need to pullback to fuel the next push higher – this is true with all
waves. The chart shape is definitely showing parabolic growth, but I expect that when looked at across many more years this will simply be a part of building a base.

Bitcoin Priced in U.S. Dollars - 6/8/2017

So how will we know that a true
bubble has formed? For me I know that
cryptocurrencies are the future and that they will trade alongside sovereign
currencies and will eventually replace them.
I will NOT own any cryptocurrency created or “managed” by a bank. Until the market cap of Bitcoin rivals that of
the United States, I will not be convinced that growth has stalled. There are, of course, other signs we can look
for.

As a review, here are HYMAN MINSKY’S SEVEN BUBBLE STAGES:

The late Hyman Minsky, Ph.D., was a famous economist who
taught for Washington University’s Economics department for more than 25 years
prior to his death in 1996. He studied recurring instability of markets and
developed the idea that there are seven stages in any economic bubble:

Stage One – Disturbance:

Every financial bubble begins with a disturbance. It could
be the invention of a new technology, such as the Internet (Bitcoin). It may be
a shift in laws or economic policy. The creation of ERISA or unexpected reductions
of interest rates are examples. No matter what the cause, the outlook changes
for one sector of the economy.

Stage Two – Expansion/Prices Start to Increase:

Following the disturbance, prices in that sector start to
rise. Initially, the increase is barely noticed. Usually, these higher prices
reflect some underlying improvement in fundamentals. As the price increases
gain momentum, more people start to notice.

*I THINK THIS IS WHERE BITCOIN IS NOW

Stage Three – Euphoria/Easy Credit:

Increasing prices do not, by themselves, create a bubble.
Every financial bubble needs fuel; cheap and easy credit is, in most cases,
that fuel (central banks creating it still like mad). Without it, there can’t
be speculation. Without it, the consequences of the disturbance die down and
the sector returns to a normal state within the bounds of “historical” ratios
or measurements. When a bubble starts, that sector is inundated by outsiders;
people who normally would not be there (not yet with Bitcoin). Without cheap
and easy credit, the outsiders can’t participate.

The rise in cheap and easy credit is often associated with
financial innovation. Many times, a new way of financing is developed that does
not reflect the risk involved. In 1929, stock prices were propelled into the
stratosphere with the ability to trade via a margin account. Housing prices
today skyrocketed as interest-only, variable rate, and reverse amortization
mortgages emerged as a viable means for financing overpriced real estate
purchases. The latest financing strategy is 40, or even 50 year mortgages.

Stage Four – Over-trading/Prices Reach a Peak:

As the effects of cheap and easy credit digs deeper, the
market begins to accelerate. Overtrading lifts up volumes and spot shortages
emerge. Prices start to zoom, and easy profits are made. This brings in more
outsiders, and prices run out of control. This is the point that amateurs, the
foolish, the greedy, and the desperate enter the market. Just as a fire is fed
by more fuel, a financial bubble needs cheap and easy credit and more
outsiders.

(I believe stage 4 is still in the distant future for
Bitcoin)

Stage Five – Market Reversal/Insider Profit Taking:

Some wise voices will stand up and say that the bubble can
no longer continue. They argue that long run fundamentals, the ratios and
measurements, defy sound economic practices. In the bubble, these arguments
disappear within one over-riding fact – the price is still rising. The voices
of the wise are ignored by the greedy who justify the now insane prices with
the euphoric claim that the world has fundamentally changed and this new world
means higher prices. Then along comes the cruelest lie of them all, “There will
most likely be a ‘soft’ landing!”

This stage can be cruel, as the very people who shouldn’t be
buying are. They are the ones who will be hurt the most. The true professionals
have found their ‘greater fool’ and are well on their way to the next ‘hot’
sector. Those who did not enter the
market are caught in a dilemma. They know that they have missed the beginning
of the bubble. They are bombarded daily with stories of easy riches and friends
who are amassing great wealth. The strong will not enter at stage five and
reconcile themselves to the missed opportunity. The ‘fool’ may even realize
that prices can’t keep rising forever… however, they just can’t act on their
knowledge. Everything appears safe as long as they quit at least one day before
the bubble bursts. The weak provide the final fuel for the fire and eventually
get burned late in stage six or seven.

Stage Six – Financial Crisis/Panic:

A bubble requires many people who believe in a bright
future, and so long as the euphoria continues, the bubble is sustained. Just as
the euphoria takes hold of the outsiders, the insiders remember what’s real.
They lose their faith and begin to sneak out the exit. They understand their
segment, and they recognize that it has all gone too far. The savvy are long
gone, while those who understand the possible outcome begin to slowly cash out.
Typically, the insiders try to sneak away unnoticed, and sometimes they get
away without notice. Whether the outsiders see the insiders leave or not,
insider profit taking signals the beginning of the end.

(This is where I believe Stocks, Bonds, Real Estate, Auto prices, Student loans, etc. are today; although it is wise to remember that the best performing markets in terms of percentage rise are the ones where hyperinflation is occurring - Zimbabwe, Nigeria, and today Venezuela. An interesting thought is that we may see cryptocurrencies appear to be inflating while real assets move to another round of deflation - dollars seek safety/store of value)

Stage seven – Revulsion/Lender of Last Resort:

Sometimes, panic of the insiders infects the outsiders.
Other times, it is the end of cheap and easy credit or some unanticipated piece
of news. But whatever it is, euphoria is replaced with revulsion. The building
is on fire and everyone starts to run for the door. Outsiders start to sell,
but there are no buyers. Panic sets in, prices start to tumble downwards,
credit dries up, and losses start to accumulate.

(When this happens to stocks, I expect Bitcoin and other cryptos to benefit).

In summary, it is the centrally manufactured dollar that is in
a bubble because it is produced in unlimited quantity. People who EARN dollars want to keep the
value that they earned, and are thus rightly seeking freedom by buying Bitcoin
and other cryptocurrencies. Most
importantly Bitcoin changes out the WHO is behind money. It is secure because it is decentralized, and
because politicians and private bankers cannot make an unlimited supply.

Monday, May 15, 2017

The latest episode of Deep State stupidity is shining bright. It's a perfect example of how the pursuit of security actually makes you less secure!

The NSA's spyware is now holding hundreds of thousands of computers the world over hostage. The captured media at first didn't cover this - instead they continue to pursue Julian Assange, who warned us, and they use "The Russians are coming" fake narrative to cripple the Executive Branch because he is the one the people elected to drain the swamp. The people want the Deep State drained!

The attacks of 911 were used as an excuse to create new "security" laws that deprive people of their freedoms; it was used to massively increase the size and depth of the Deep State, including the creation of "Homeland Security;" it was used to invade countries that didn't play along with our Oligarch's central banking scam; it was used to justify spying on the world, including our own people; and it was used to turn Americans into the greatest debtors the world has ever seen.

Does that make us more secure? I think not. I think quite the opposite.

In fact, bankrupting one's self in the name of security is plain old stupid. So is spying on foreign diplomats and then not expecting that to be the standard of the world.

Now we have spyware that was created by the NSA wreaking havoc all over the globe. Imagine - we spent trillions to spy on the world and now our own spy tools, that we paid for, are being turned against us. Our own agencies work tirelessly to find vulnerabilities to exploit. Instead of reporting and fixing the weaknesses, our Deep State losses control which is exactly the karma we should expect.

Freedom and security are inseparable. Pursue freedom and you will have security at very little cost. Pursue security and you will have neither!

Americans and the world need to wake up to how we're being manipulated. Here's the chain of events:

- The primary check and balance of the Constitution was usurped by central bankers who bought off Congress and got the illegal Federal Reserve Act passed in the year 1913.

- The central bankers, our Oligarch masters, then created money from nothing and used it to buy for themselves all three branches of our government. They also created wars and used the "solutions" to those wars to create global control mechanisms in the U.N., IMF, World Bank, and BIS. They skim productivity and assets from the entire world in this fashion. All politicians and judges work for them, they cannot get elected without their "money."

- The Oligarchs own the military industrial complex, the Deep State agencies, the media, pharma, giant "food" companies, our universities, everything... and use them to control us.

In the old days when they weren't getting their way, they would simply crash the markets until they got what they wanted.

Today they simply use the tools at their disposal to spin narratives to cover their covert manipulations.

Total capture.

As the world wakes up and realizes how their freedom has been captured, then it will once again be up to the people to claim the freedom that has been lost. That day is approaching faster than anyone imagines.

The very same Oligarchs who run the world now will use the coming upheaval to simply create another system of control with them in charge. For humanity's sake, we must not allow that to happen again. We must install a proper rule-of-law, one that promotes freedom knowing that true security always follows freedom.

Our pursuit of security is costing us dear. Nothing, however, will be fixed until we reclaim our Constitutional duty to have our representatives "coin money and regulate the value thereof." That is the root of our sovereignty, and the key to our freedom that we ceded in the year 1913.

Thursday, May 11, 2017

To understand socialism, we must first understand a key fundamental and indisputable principal - freedom and security are inextricably interconnected and cannot be separated.

When one pursues security, they wind up with
neither freedom nor security. But when
one pursues freedom, security follows at very little cost.

Socialism is the pursuit of security and the abandonment of freedom. When you pursue security you will wind up with neither security nor freedom!

The notion of entitlement is bankrupt and will forever be so. This is because one person’s entitlement is always someone else’s burden – the sole exception is your right to exist, be blissful, and to attempt to influence the future.

The burden of entitlement is why socialism, in any of its evil forms, has always eventually failed. It is against human nature and is an improper rule-of-law to take from those who are productive and then give it to those who are not.It destroys the incentive to produce, so that no one eventually does.

This is not open to debate, the failure of socialism is well documented. I have witnessed it with my own eyes and have shared just one of my many experiences with you here - Adventure into the Soviet Union at the Height of the Cold War. That section begins about half way through the article, so please scroll down to it on that page.

Like the road to hell, most socialists and social structures were founded on good intentions. But the result is evil and is responsible for destroying millions of lives, countless opportunities, and for slowing the progression of humanity.

Socialism is also a hidden form of dictatorship or monarchy - they are all about power and control by an extremely narrow segment of the population. And isn't that exactly what is happening with the consolidation of wealth in the current system in the United States, in Europe, and wherever a central bank, IMF, or World Bank banker might be found?

Yes, creeping socialism hidden under the Trojan Horse ideology of "Globalism" is nothing but a ruse to consolidate power by a few. Those few use our "good intentions" to manipulate us to support them, to even willingly surrender our freedom.

"We will make you secure," they say. "Allow us to spy on the world."

They slip their false narratives past us as if we we're already in agreement - take the notion that it's okay for us to spy on foreign diplomats... this sick narrative is repeated over and over by "news" actors in the mainstream media, a favorite tool of the oligarchs, the dissemination branch of the Deep State.

This is quite perverse and sick in many ways - and is the very reason I am writing "Definitive Freedom."

Someday in the very distant future the world will be ready to drop borders, but it will not be appropriate until and unless it is built upon a proper rule-of-law.

The production of money is the tool through which power and control are exercised. This is where the "Golden Rule" saying comes from - "Those who have the gold make the rules."

It's not about gold, per se, it is about power and control. That is why what's most important is not what money is, or what money is made of, but what's most important is WHO is in control of its production and WHO it is that regulates the value thereof by regulating the quantity.

A proper money system is one where money is spent into existence by our government, not lent into existence by private individuals who skim interest off productive people. It is a completely ludicrous notion that our nation borrow money, and that we have put private individuals in charge of creating money and of regulating the quantity. This action has removed the people, us, from control of our government and from many other aspects of our lives.